#NZDUSD @ 0.63942 gains traction for the fourth successive day amid the prevalent USD selling bias. (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• NZD/USD gains traction for the fourth successive day amid the prevalent USD selling bias.
• The Fed’s dovish pivot keeps the US bond yields depressed and weighs on the greenback.
• The cautious market mood could cap the risk-sensitive Kiwi ahead of the US NFP report.

The pair currently trades last at 0.63942.

The previous day high was 0.64 while the previous day low was 0.6233. The daily 38.2% Fib levels comes at 0.6336, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6297, expected to provide support.

The NZD/USD pair attracts fresh buying on the last day of the week and maintains its bid tone through the early European session. This marks the fourth straight day of a positive move and lifts spot prices closer to the highest level since mid-August touched on Thursday. Bulls now await a sustained strength beyond the 0.6400 mark amid the prevalent US Dollar selling bias.y

The USD Index, which measures the greenback’s performance against a basket of currencies, languishes near a multi-month low amid the recent dovish signals from the Federal Reserve officials. In fact, Fed Chair Jerome Powell sent a clear message on Wednesday that the US central bank will soften its stance and said that it was time to slow the pace of interest rate hikes. Apart from this, signs of easing inflationary pressure and sluggish US Treasury bond yields continue to weigh on the greenback.

On Thursday, the US Bureau of Economic Analysis reported that the Personal Consumption Expenditures (PCE) Price Index slowed to 6% YoY in October from 6.3% previous. Adding to this, the annual Core PCE Price Index, the Fed’s preferred gauge of inflation, edged down to 5% from 5.2% as expected. The softer data dragged the yield on the benchmark 10-year US government to a nearly two-month low. That said, the cautious mood could limit losses for the safe-haven USD and cap the risk-sensitive Kiwi.

Furthermore, traders also seem reluctant to place aggressive bets and prefer to move to the sidelines ahead of the closely-watched US monthly employment details. The popularly known NFP report, due later during the early North American session, will influence the near-term USD price dynamics. Apart from this, the broader risk sentiment should provide a fresh impetus to the NZD/USD pair. Nevertheless, spot prices remain on track to register gains for the seventh successive week.

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.6391 at the time of writing. Pair opened at 0.6374 and is trading with a change of 0.27 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 0.6131, 50 SMA 0.5873, 100 SMA @ 0.6025 and 200 SMA @ 0.6292.

The previous day high was 0.64 while the previous day low was 0.6233. The daily 38.2% Fib levels comes at 0.6336, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6297, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.6271, 0.6168, 0.6103
• Pivot resistance is noted at 0.6439, 0.6503, 0.6606

[/s2If]
Join Our Telegram Group